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Ontario|Tax LawGeneral Rules 195 Municipal Property Taxes Ontario's Fair Assessment System replaces the old methods of property assessment. The new system will reassess property values and allow municipalities to determine new tax rates.
- The old method of assessing property values
The old system assessed property values as of a certain date, and then taxed properties at a percentage of the assessment amount. In some areas the assessment dates did not change for many years, so that older houses did not have their assessment amount increased to reflect the increased value of the property, while new houses with lower values were assigned higher assessment amounts. This resulted in owners of older homes paying substantially less tax than owners of new homes, regardless of the actual value of the property.
- The new system for assessing property values
The new system will still tax properties based on a percentage of an assessed value, which may not necessarily be the amount paid to purchase the property. However, the assessment values will all be brought up to date and reviewed on a yearly basis once the system is completely phased in. Properties will be assessed based on what is called their "current value". Current value means the amount of money the property could sell for to an independent buyer.
- Tax rates
Tax rates will be set by the municipality, which can choose to tax different classes of properties at different rates. Some of these classes include: residential, farming, commercial, and industrial. If your property falls within two or more classes for tax purposes, and the rates for the classes are different, the property may be assessed based on what percentage of the property falls into each class.
- Appealing a property assessment
If you do not agree with an assessment of current value, or the property classification, you can file an appeal with the Assessment Review Board within 90 days of an assessment being released. You will be required to fill out formal documents and pay a fee. The Assessment Review Board will have the final say, unless the Ontario Court of Justice agrees to hear an appeal of an Assessment Review Board Decision.
For additional information about property assessments and appeals, refer to the Blue pages of your telephone book for the property assessment office in your area.
RULES FOR INDIVIDUALS
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